The president of the French Banking Federation, Philippe Brassac, assured this Saturday, March 18, that the current banking turmoil in the world, which hit Credit Suisse in particular in Europe, will probably not contaminate the banking sector in France.
“French banks are very solid”
“There is no risk because there is no possible contagion mechanism between the events we are seeing and the French banks,” said the banker, managing director of Crédit Agricole, in Inter de France. “French banks are very strong because of regulation” and “there is no mechanism, as there may have been in the past, for the spread.”
Since the bankruptcy of Silicon Valley Bank (SVB) in the United States on March 10, and despite the lifeguards of the Swiss and US authorities, the banking sector fell on the stock market this Friday, dragging all markets into the red.
A UBS takeover of Credit Suisse?
As last week, concerns center on Credit Suisse, one of the 30 banks globally considered too big to fail, and which could be taken over in whole or in part by the biggest Swiss bank, UBS. , starting this weekend, in an effort to stop the panic.
“Almost all French banks are subject to specific prudential rules” such as capital requirements, liquidity, interest rate risk management, listed the representative of French banks.
“Regarding the American banks, there is no link between the balance sheets”, and regarding Credit Suisse, “there is no possible contamination”. In fact, “since 2008 (…), the big banks no longer have the ability to link up with each other through monetary loans as we did in the past”, explained Philippe Brassac.
Source: BFM TV
